Regulatory Alerts2013-10-15
Regulation on Mortgage Lending Process
Issued by the Bank of Mongolia via Resolution 446, this regulation establishes mandatory standardized procedures for mortgage lending applicable to all commercial banks and optional for non-banking financial institutions. It mandates strict eligibility criteria including a minimum 30 percent down payment for residential properties and 50 percent for commercial real estate, while capping the debt-to-income ratio at 45 percent and restricting loan-to-value ratios. The framework comprehensively governs the entire loan lifecycle by detailing required applicant documentation, collateral valuation standards, risk assessment protocols, and ongoing loan servicing and monitoring obligations.
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